EagleRock Land (EROK) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 results with normalized revenue up 32.3% and Adjusted EBITDA up 31.7% sequentially, following a successful IPO in May that raised $368 million at $18.50 per share.

• Completed the acquisition of Intrepid Ranch, expanding New Mexico fee acreage by 50,000 acres for $77.1–$78.2 million, and integrated Shallow Valley Ranch/Double Eagle assets ahead of schedule.

• Business model leverages a capital-light, land-focused platform with diversified, commodity-insulated revenue streams.

• Strategic relationships and ongoing M&A provide predictable cash flow and growth opportunities.

Financial highlights

• Normalized Q2 2026 revenue was $46.8–$47 million, up 32% from Q1 2026.

• Normalized Adjusted EBITDA reached $36.2 million, up 32% sequentially, with a margin of 77.5%.

• Free cash flow was $22.2 million, with a 75% conversion rate; adjusting for predecessor interest expense, conversion was 96%.

• Cash and cash equivalents: $61.8–$62 million; available liquidity: $261.8–$262 million as of June 30, 2026.

• No debt outstanding as of June 30, 2026.

Outlook and guidance

• Full-year 2026 normalized Adjusted EBITDA guidance raised to $129–$133 million, above original expectations.

• Guidance excludes incremental EBITDA from the Intrepid acquisition, expected to add ~$2 million per quarter.

• Expect increased revenue from high-margin surface use royalties and asset integration in the second half of 2026.

• Margin expansion anticipated in 2027 as surface use royalties become a larger revenue share.